Hiring Software Developers in Vietnam with Speed & Compliance with EOR Solutions

The client, a US-based software consulting firm, identified Vietnam as a strategic location to expand its development capabilities and support global client delivery. While the country offered a strong talent pool, the company faced significant operational barriers due to the absence of a local legal entity. By leveraging Reco’s robust EOR solutions, our client successfully onboarded software developers across multiple locations in Vietnam and quickly and compliantly scaled its development team.

1. Client Overview

The client is a US scale-up tech company that delivers custom software development and technology consulting services to enterprise and mid-market customers worldwide. To support growing client demand and accelerate delivery timelines, the company sought to expand its engineering capabilities in Asia, with Vietnam identified as a strategic location for hiring.

Operating without a legal entity in Vietnam, the client required a compliant and scalable employment model to hire and manage local software developers. The company prioritized speed, compliance, and operational stability while maintaining high standards for employee experience and payroll accuracy.

2. Client Requirements

The client needed to onboard a team of software developers in Vietnam, a market where they did not have an existing legal entity. This created immediate challenges related to compliance with Vietnamese labor laws, payroll processing, and tax obligations.

Key concerns included:

• Ensuring compliant employment contracts under the Vietnam labor law
• Accurate payroll management and the ability to calculate payroll tax correctly
• Managing statutory contributions such as personal income tax and social insurance
• Lack of an in-house payroll manager or payroll compliance practitioner with Vietnam expertise

Without local infrastructure, the client needed a solution that enabled fast, compliant hiring while minimizing operational and compliance risks.

3. Reco’s Approach

Reco delivered a tailored EOR solution combined with professional payroll management to meet the client’s hiring and compliance requirements in Vietnam.

3.1. Legal Employment & EOR Services

Reco acted as the legal employer for all Vietnam-based software developers, enabling compliant hiring without the need to set up a local entity. This included issuing Vietnam-compliant employment contracts and ensuring alignment with labor law requirements.

3.2. End-to-End Payroll Management

Reco assumed full responsibility for payroll processing, managing:

• Monthly salary calculations and payslip generation
• Accurate calculation of payroll tax, PIT, and statutory contributions
• Timely salary payments and filings with local authorities

A dedicated payroll compliance practitioner oversaw payroll accuracy and regulatory adherence, reducing compliance risk.

3.3. Payroll Leadership & Ongoing Support

Reco functioned as the client’s external payroll manager, providing continuous oversight of payroll operations in Vietnam. This included proactive monitoring of regulatory updates to ensure ongoing compliance, preparation of accurate payroll reports and audit-ready documentation, and ongoing advisory support to the client’s HR and finance teams. By taking ownership of payroll governance, Reco minimized compliance risk and ensured payroll processes remained reliable and up to date.

3.4. Seamless Developer Onboarding

Reco ensured a smooth onboarding experience by:

• Coordinating fast onboarding timelines
• Guiding developers through tax registration and social insurance enrollment
• Providing local HR support to address payroll, benefits, and compliance questions

This structured approach enabled the client to scale its Vietnamese development team quickly, compliantly, and with minimal operational friction.

4. The Outcome

By partnering with Reco for EOR and payroll services in Vietnam, the client successfully onboarded and managed a team of software developers without establishing a local legal entity. Payroll processing remained accurate and compliant throughout the engagement, supporting long-term operational growth in the region.